XRP News Today: XRP Under Pressure as Longs Crumble Amid Regulatory Clarity and ETF Inflows

Ripple's XRP has seen a challenging 2025, with the price failing to recover previous mid-year highs and showing signs of ending the year in negative territory. The asset has faced a 342.9% liquidation imbalance against bullish positions, indicating a severe pressure on long traders. Despite regulatory progress and increased institutional interest, XRP's price remains under sustained downward pressure.

The XRP market has also seen mixed signals from exchange-traded funds (ETFs), with recent inflows into XRP-linked products offering some optimism amid broader macroeconomic headwinds. Franklin Templeton's XRP ETF recently crossed 100 million XRP in holdings, highlighting growing institutional confidence. However, the spot price remains relatively stable around $1.84, showing little response to these developments.

Investor sentiment is further complicated by the regulatory landscape and market liquidity conditions. The post-holiday trading environment, with thin order books and a focus on year-end positioning, has amplified the impact of news and trading activity. As the market approaches the close of 2025, the focus remains on whether XRP can stabilize its price and gain more traction against the backdrop of macroeconomic and regulatory developments.

Institutional Interest and Regulatory Developments

The XRP ecosystem has gained momentum from regulatory clarity and institutional adoption. Ripple's conditional approval for a national trust bank by the Office of the Comptroller of the Currency (OCC) is a significant milestone. The bank will focus on fiduciary activities, reserve management for its stablecoin RLUSD, and institutional crypto custody. This move is seen as a long-term bullish factor for XRP's adoption and legitimacy within the U.S. financial system according to market analysis.

In addition, the launch of multiple spot XRP ETFs has increased institutional exposure to the asset. Franklin Templeton's XRP ETF has seen substantial inflows, with holdings exceeding 101.55 million XRP. This institutional participation is crucial for stabilizing demand and reducing price volatility, as it brings regulated capital into the market. The growing ETF ecosystem is also attracting assets from Bitcoin and Ethereum ETFs, signaling a shift in investor preference according to recent reports.

Market Dynamics and Investor Behavior

Despite these positive developments, XRP has struggled to maintain a consistent upward trend. The asset is currently trading near $1.84, with short-term gains offset by weekly and monthly losses. Technical indicators suggest that the price remains vulnerable unless it can reclaim the $1.90 level, which has been a key resistance point. The thin liquidity in the post-holiday market has made it difficult for bullish momentum to gain traction.

Investor behavior has also shifted, with a growing willingness to sell at a loss reflecting increased uncertainty about XRP's near-term outlook. This risk-averse sentiment has outweighed long-term conviction, leading to continuous downward pressure. The decline in active transacting addresses on the XRP Ledger further indicates reduced participation from both retail and institutional players, adding to the bearish narrative.

What Analysts Are Watching

Analysts are closely monitoring several key factors that could influence XRP's price in the near future. The $2.00 level has become a psychological and technical pivot, with many traders watching to see if XRP can reclaim it with conviction. Short-term momentum hinges on the $1.80 support level, and a daily close below it could trigger a deeper correction. Resistance levels at $1.94 and $1.98 must be broken for a potential rally toward $2.10–$2.20 according to technical analysis.